Ford Motor Company: Business and Environment Analysis Report - BUS101

This report provides a comprehensive analysis of Ford Motor Company's business environment. It begins with an introduction to business and its environment, followed by an overview of different types of business organizations, including private, public, and voluntary sectors. The report then delves into the dimensions and range of business organizations, differentiating between large, small, and micro businesses. It explores organizational structure and functions, specifically examining the interrelationships between departments such as marketing, HR, research and development, production, and finance. The core of the report analyzes Ford using the PESTLE model to assess political, economic, social, technological, legal, and environmental factors. It also applies SWOT and Porter's Five Forces models to evaluate the company's internal strengths, weaknesses, and external opportunities and threats, followed by an examination of how these factors interrelate. The report concludes by summarizing the key findings and insights into Ford's business strategy and performance within its environment.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
Part 1................................................................................................................................................1
Diverse categories and intention of business organisation..........................................................1
2) Dimension and range of a variety of business organisation....................................................2
3) Organisation structure and functions.......................................................................................3
PART 2............................................................................................................................................5
4. PESTLE model........................................................................................................................5
5. SWOT and Porter's five Force model......................................................................................8
6. Explain how strength and weakness interrelate with external macro factors each other........9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business can be defined as an activity which is performed by organization in order to use
available resources and manage productivity which is related to buying and selling of goods and
services. Business environment can be elaborate as that branch of business which includes
surrounding factors of business where organisation operates its function. In this current report
there is discussion about FORD. It is an American multinational organisation which is dealing in
cars and motor engines. At this report there is discussion about various kind of organisations
based on public private and voluntary system (Akhtar and Sushil, 2018). There is also a
discussion about the internal and external environment factors which impact on the
organisational performance. Along with this there is also a discussion about different functions
with performed within the organisation.
Part 1
Diverse categories and intention of business organisation
In context of business environment, there are different kind of business organisation which
are performing their functions and activities in relation to achieving their goals and objectives
regarding profitability. Business environment through different kind of organisations which are
working with various goals and objectives in their surroundings (Franklin and Marshall, 2019).
These can be classified as private organisations public organisation and voluntary organisations.
Every organisation has its own objectives and aim which has to be achieved by the management
of the team. These objectives and aim at different from each other for every public private and
voluntary organisation. This has to be achieved in a specific time frame. Some of these functions
are discussed below according to the nature of organisation:
Private organisation: A private organisation can be defined as a form which is working
as an private limited which include forms like partnership association of persons corporations or
agencies. These are owned by private individuals where the main aim of the organisation is to
earn profit for running the business. These are generally non-federal and self-sustained
organisations and entities which perform their business activities in order to achieve the
profitability for both owner and business. Some common example of private organisations are
Tesco as the ford and many other.
Legal structure of private organisation
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Sole trader: These are those private organisation which are selling their products and services as
a single seller. Some common example of these kind of organisations are our local retailers was
selling the products and services on their own (Eling and Schaper, 2017).
Partnership: Partnership can be defined as a mutual contract between two individual to
share the profit and losses of the business at some agreed ratio.
Private limited companies: It can be defined as those organisation which are dependent
on local system where they cannot sell their shares in the market. Some common example of
these organisations or AIRDRY and many other.
Government organisation: Government organisation can be finance organisation which
is fully owned by government. This kind of organisations are based on minimum profit where the
organisation structure is depended on the nature of the firm and the area where it is working.
Government organisation generally operator for non-profit purpose. The main motive behind the
government organisation is to serve the customers in an appropriate way so that they can provide
effective services to the customer.
Legal structure of government organisation
Fully owned government body: under this kind of legal structure all those organisations are
covered with a fully owned by the government. For example and NHS hospital and many other.
Partially owned by government: it include those organisations which follow the legal structure
where the 50% partnership is a government and rest is a private individuals.
Voluntary organisations: it can be defined as organization which is performing its function as an
individual firm. This kind of organization are related to multiple function organization which use
to perform their actions according to requirement of resources and use of them. In context of
present environment
2) Dimension and range of a variety of business organisation
Large, small and micro businesses are different type of organisations which are considered
to be best examples of different range of business organisations available in different countries
which offer the users with various offerings throughout the world (Gorla, Chiravuri and Chinta,
2017). And these are various kinds of business organisations which are signifying different
dimensions with various market shares and other things that differ from one another.
Micro organisation refers to small division of business which are affected by situation in relation
to the economy of a country so that they can effectively provide their users with different goods
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and services for their major survival and maintenance. When considering these has been stated as
small size shops which may have two or more subordinates director or staff as per the
requirement. The market share of these businesses is also considered to be very low. There are a
number of different micro companies in the market which have the largest share in United
Kingdom. The business organisations are retaining their businesses for various purposes in future
time period that will affect the profit and the growth of company in long run. These are
considered therefore that the director of organisations focus on major maintenance and survival
of these organisations in the market place as there are a number of competitors present for them.
When taking small organisations into context it is seen that they have small market share in the
bigger markets. Small organisation are majorly focusing on earning more and more profit so that
they can survive in the market and also they consist of directors and five or more subordinates.
These are growing and developing organisations and also signify small level of organisation
which can conduct business in limited area. Every person in United Kingdom can become
successful and operate their own business in favourable market situation.
Medium source organisation are bigger than small and micro organisations and mainly consider
of small manufacturing units (Khajeheian, Friedrichsen and Mödinger 2018) . These are
organisations that are also operating at international level. They are providing products of
superior quality and also making sure that they can gain benefits from facing competition in the
market. It is also determined as a business organisation that it is necessary for them to make sure
they are sustaining for a longer period of time because they also have to compete with the firms
in international market and different multinational companies.
When taking Ford into consideration it is seen that it is one of the best example that is
carrying on all its business in local as well as international markets. The business organisation is
effectively providing employment opportunity to a number of people throughout the world. They
are growing and connecting to various extensions of business throughout the globe. It is
necessary that they are successfully building reputation of business through providing quality
products and facing competition in market.
3) Organisation structure and functions
There are different kinds of organisational function within an organisation which are directly
related to each other and are important to be interrelated for performing the functions in an
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effective manner. Some of these installations are discussed below in relation to ford which are
important for the firm to achieve their objectives.
Marketing and HR department: marketing in HR department are interlinked to each other as
marketing as a function which regulate the relationship between customer and organisations
product by using the tools of marketing. On the other side, human resources function is related to
managing the human resources of the form in order to increase their skills and ability for
achieving objectives (Hamilton and Webster, 2018). In context of ford, go to the function within
the organisation are interrelated to each other we get marketing department provide information
to HR department about the current requirements degrees of human resources which has to be
managed. Along with this, human resources department provide working within the marketing
department. HR department also provides training and development of the market in India so that
they can easily perform the function of marketing.
Research and development in marketing: research and development department is all show the
marketing department of the organisation in relation to achieving the business objectives and
performing the function ineffective. Research and development department help the marketing
and identifying the current trends and providing the tools and techniques which can be used
within the marketing according to the analysis of their main competitors. A marketing
department food also help research and development department in providing a database about
the customers for which research and development department has to analyse the market.
Production and HR department: production in HR department also interlinked within the food to
each other. Production department include the functions related to developing the products and
services in relation to selling them within the market through the required customer. Marketing
function within ford production department identify the current trends in the market which can
be used is produced according to the current trends in requirements of customer. This help your
organisation in achieving its objectives in managing a function in appropriate level so that it will
achieve a better profitability by using the productive means. This also effective coordinator
environment where both the department and fulfill their required and sell the products. This is
also useful for the organisation in relation to maintaining a better working concern and producing
the products which are required under specific strategy.
Finance and human resources department: finance department actress in backbone of the
organisation where it has a good relationship with each and every department within the form so
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that it can provide finance to them for their working. Human resources department and physics
department has a separate relationship in ford (Chukhray and Mrykhina, 2018). Under this
organisation, finance department help the human resources department in identify and
performing appropriate training and development process for providing adequate finance two
different activities. This helps in increasing the ability and capacity of force to perform on
different objective. On the other side, human resources department also play videos kind of roles
and responsibilities to finance department of the organisation. it help the finish department in
managing the functions and provide information regarding different other departments. These
information’s are used for reference department to perform its function effectively and achieving
the objectives. This is also useful for the firm to manage its function and achieving objectives in
a timely manner by linking the finance and human resources together.
Figure 1: Divisional Organisation Structure
(Source: Divisional Organisation Structure, 2018)
PART 2
4. PESTLE model
Pestle analysis cab be stated as that analysis which is related to identification of various factors
which are directly related to external environment. These are associated with functioning of
different individuals within business enterprises. This model includes different factors which are
political, social, and economic and many others. It is important for the organisation to identify
different factors which can impact on the performance of different individuals within the
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organisation. These factors also impact on the performance of different functions which are
associated with decision making process (Bedianashvili, 2016). In context of ford, it is essential
for manager in organization to identify such factors and use them in appropriate manner. These
all are described below:
Political factor: It includes those factors which are related to political environment of area
where organisation is working. In current business, ford is working at international level. This
impact organization in direct manner as it has to use different strategies for each nation where it
is operating. In context of business, the major elements which impact on performance of ford in
political factors is stability in business functions. This has positive impact on the performance of
firm as it help in managing functions and using impacting functions for higher profitability.
There are also some factors which impact negatively on the performance of organization. These
are terrorism and many other. Terrorism impacted on organization in negative way as form has to
use its function and manage profitability in effective way. This also leads to low availability of
customer because of life threats.
Economic factor: These are those factors which are related to function which are performed by
organization in economic environment. These are exchange rate, growth, inflation and interest
rate . These are based on condition of economy in UK. In context of ford, there are number of
economic factors which impact on organization. These have both positive and negative impact
on the performance of firm. The positive impact of these factors is related to higher GDP growth.
This is because it helps in organization in using new and developed product at higher prices.
Some of economic factors has also there negative impact on organization. These are higher
interest rates and many other. Due to high rate of interest organization has to implement high
cost and it reduce profitability.
Social factor: Social factors are those which are related to the. Social environment where
organization is working in current time. In context of this, it includes feeling, tastes and
preferences of customer in market. In context of ford, there are number of social factors which
impact on organization and help firm in operating in current environment. These factors has
positive impact on organization as it helps firm in growing its market (Saleh and Watson, 2017).
Under this, there are number of factors like change in trends which impact on firm. Here, ford is
using new and innovative tools and techniques which helps organisations in performing
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according to current trends. This motivate organization in using current trends for managing
performance and increasing profitability according to requirement.
Technological factor: .
It include those factors which are related to changes within technology of business functions. In
context of ford these changes are directly associated with performance of firm and impact on
organization in direct way. Under this , ford is operating in motor car buainess where
organization has to identify new and rapid changes in use of technology. These has both positive
and negative impact on firm. Positive impact of this is that due to chnges organization can attract
customers and can sale its product with better management. On the other side this also impact on
firm in negative way. This is because firm has to use regular update in its technology which
increases cost and decrease revenue.
Legal factor: It use to cover all laws and rules which are formulated by different legal
authorities of the nation where the organisation is working. It is necessary for firm to follow
these rules and regulations so that it can achieve its business objectives and can perform
functions. In context of Ford, these factors are related to those laws which have to followed by
firm at the time of working in UK (Russo and Confente, 2017). This have positive impact on
business of firm as they provide opportunity to ford to use these laws and full fill its social
responsibility in context of society.
Environmental factor: it is most important part of this model Which is related to current
business environment. This is because it helps organizations in dealing with various elements
which are related to natural environment. This impact positively on organization because it helps
firm in achieving its goals and objectives.
Advantages: One of the major strength for Ford is that it is a well-known brand in auto mobile
industry and it is also recognised in global market as the marketing and advertising strategy of
company is a success. The research and development department of the organisation is also its
key strength as they are committed towards development of various new technologies and
products. They are continuously trying to build in fuel-efficient and safe vehicles for their
customers. Ford is continuously offering their customers with diverse products which is
influencing a number of customers towards them. They are also adopting various products and
services into their portfolio which helps in providing them strong leverage to develop their
business.
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Disadvantages: There are a number of weaknesses for Ford which includes the product recalls
in 2016 due to which the company has to bring in 8,30,000 products as they had faulty side door
latches. The foothold of company in various geographical area is also very low due to which the
company have to face decrease in revenues in certain markets(Prajogo and Oke, 2016). Due to
some of the negative media attraction that company have gained throughout the time is leading
to poor reputation of company in various markets. Also the company is highly dependent upon
US and Europeain market which is not right as they should now focus upon developing markets
like China and India.
5. SWOT and Porter's five Force model
SWOT Analysis of ford
SWOT analysis can be defined as a Framework which is used by the organisation in relation to
managing its weaknesses opportunities and threats according to its strength within the market so
that it can achieve the objectives and formulate effective strategy to manage its functioning in
competitive environment. In context of food, there are number of frameworks which can be used
by the organisation in order to maintain its functionality where the swot analysis is prime
function which can help organisation in managing the decision in achieving its objectives in the
current business environment.
Strength: what is operating in competitive environment where it causes different kind of
current in relation to achieving its objectives and managing functions. This strategy, the major
strength of food is its Innovation and techniques (Müller and Hoppstadius, 2017). Innovation is a
prime responsibility of dord management staff organisation use new and innovative tools and
technology in relation to manufacturing the car. In managing the functions and achieve the
objective. Also facility its not functioning and when is the working condition according to the
requirement of firm.
Weakness: there are number of weaknesses which has to be face by ford while working
in a business environment. The major weakness of organisation is it current market where it field
in operations within Asian markets. This act negatively on the revenue of the form and decrease
its profitability within the market where it is operating. Improper supply chain management is
also and weakness of ford which impact on the organisation and decrease its version in the
market. This directly impacted on the profitability of the firm and increases its revenue by 9% as
well as also reduce the reputation of the firm in the current market.
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Opportunities: There are number of opportunities in front of ford which can be used by
organisation in relation to increasing its profitability and productivity within the market and
perform in an effective manner. The prime of virginity in front of organisation is related to
acquiring it merger with existing brands so that it can easily enter in the new market segments.
This organisation to use the technology of other firm and perform its function by using this
technology in new market segments. This also improved version of the form in the market at
help in implementing the projects in more effectively.
Threat: changing policies direct impact on the performance of organisation type of technology
because of changes in condition of government. The changes are directly related to the impact of
Brexit (Saura, Palos-Sanchez and Correia, 2019). This threat to the firm because there is in the
policies of business within UK. Competition to the organisation and to induction in property of
firm. This will also impact on working as of the firm in the market and will slow down its
growth.
6. Explain how strength and weakness interrelate with external macro factors each other
Internal as well as external both elements are playing important role in the process of
business as they help forward to take effective decisions. There are various trends of companies
which involve effective utilisation of all the resources and making sure that they are grabbing all
the opportunities present in market in order to gain competitive advantage over their competitors
in the market. It is also seen that Ford is working towards strengthening their own capabilities
and minimising the threat that business organisation can face due to competitors in market.
When considering weaknesses of Ford it is seen that company needs to invest highly in research
and development sector. Due to this it is seen that the budgetary issues of Ford are difficult to be
managed by the management of company. The reputation of company is considered to be poor as
there are a number of other rivals present in European and Japanese market which are better than
it and are also proving themselves to be inferior brand selling luxury cars. The dependence of
Ford upon US and European market is also one of its weaknesses as this is limiting the revenues
and profits of company to great extent. However experts are predicting that major sales of car
will be from the emerging markets such as China and India but Ford majorly focuses on
European and US market (Fleming, Lynch and Kelliher, 2016). The ability of organisation is
decreasing as the company needs to make sure that they are minimising threat which are directly
affecting operations and functions of business. There are a number of different policies, licenses
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and taxes regulated by governments of different nations in which companies dealing. Due to this
it is required by Ford to make sure that they are continuously examining the external
environment for its benefits.
SWOT/PESTEL INTER-RELATION
Political factors: Ford is affected by political factors at wider level which is proving to be a
weakness for organisation as it is operating in more than one country. It becomes difficult for
organisation to manage the political variations in all these nations.
Economic factors: Also when considering the stability of economy the infrastructure and
development in economy of countries where Ford is operating are bringing in more opportunities
for business to expand at international level. It is a great advantage for business which is helping
in expansion of business.
Social factors: When taking social factors into consideration it is an advantage for Ford as
company is successfully using the social factors such as behavioural changes of consumers
towards environmentally friendly vehicles for generation of their products. It is a benefit that is
provided by social factors to the company.
Technological factors: Technological factors are very important for Ford as company is totally
based upon the technological development they are bringing in all their vehicles (Valenzuela-
Fernandez and et. al., 2019). So Ford is benefiting from the technological factors as they are
bringing in new technologies in their upcoming models.
Environmental factors: Environmental factors are necessary to be analysed by Ford as it will
help company to generate goodwill and brand value. Company is using this as a strength as they
are developing environmental friendly vehicles which may increase their revenues and also build
their social status.
Legal factors: high-level of involvement of government in production sector of automation is
seen which is a weakness for Ford. This makes it necessary for Ford to look into various laws
and policies that are made by government in different countries.
CONCLUSION
It can be concluded from the above-mentioned information that there are different kind of
organisations which are dependent on their nature. These entire organisation has their own
structure, value, size and function. It is required by business entity to use its function and manage
it in according to requirement. It is also evaluated from the above that there are different kind of
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functions which are required to be performed in relation to monitoring the external and internal
impact of business environment. This factor search associated with organisation performance and
lead increasing the firms version is used in the market. This also evaluate the functions and
appropriate manner and reduce the profitability of the form if it is not identified by the
organisation. Along with this, it can also concluded that there are various factors which are
associated with the organisations performance. In relation to this organisation need to analyse the
internal environment which will help in functioning. SWOT analysis is group sent weaknesses
opportunities and threats which can be used by ford in relation to minimising drawbacks within
its internal environment and using this function in appropriate way
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